International trade is on the brink of collapse due to COVID-19 pandemic, and the results can be as severe as of 1930s Great Depression, The Guardian reported.
According to World Trade Organization (WTO), the trade might shrink by 13%, and in the worst-case scenario, the trade will shrivel down to 32%; a bigger drop than 2008-09 recession caused by banking crises.
Director general of WTO also added that an end to the trade tension between the US and China would help minimise the dire effects caused by the pandemic.
He further added, “We need to lay the foundations for a strong, sustained and socially inclusive recovery. Trade will be an important ingredient here, along with the fiscal and monetary policy.”
As per the official statement of WTO, recovery of trade is expected next year, but it is largely depended on the duration of the outbreak and the effectiveness of policy responses.
